Ascott Residence Trust issues $200 mil sustainability-linked bond
In an April 20 news release, ART states the bargain was oversubscribed by 2.2 times on the back of strong need, resulting in the bond difficulty being upsized from $150 million to $200 million. The last orderbook closed at $335 million with orders from throughout 47 accounts. In terms of capitalist appropriation, 79% of the bond issuance went to institutional investors, while private financial capitalists represented 21%.
The bond was released under ART’s $2 billion Multicurrency Debt Issuance Programme under its newly-established Sustainability-Linked Finance Framework. The five-year bond will develop in April 2027 and bring a dealt with discount price of 3.63% per year, paid semi-annually in arrears.
Profits from the bond issuance will definitely be utilized to refinance ART’s existing loanings. DBS Bank is the sole sustainable money adviser, lead manager and also bookrunner for the transaction.
Last year, ART acquired the very first hospitality trust environment-friendly finance in Singapore, which was used to fund its first development project – lyf one-north, a co-living residence certified with Green Mark GoldPLUS by the Building and Construction Authority of Singapore.
According to ART, the issuance of the sustainability-linked bond has actually netted the trust a green premium, or “greemium”, which describes the lower price of financing from releasing debt that has a positive environmental impact as contrasted to conventional bonds. ART has also committed to a sustainability performance aim for of greening 50% of its complete portfolio by 2025. To accomplish this, the homes should achieve a regionally, nationally or internationally acknowledged green building specification or accreditation by an identified third-party.
” Sustainability is primary to whatever we do at ART. Aligning our financing requires with our sustainability initiatives to construct a greener portfolio shows ART’s focus on responsible growth,” says Beh Siew Kim, CEO of ART. “As of 31 Dec 2021, 33% of ART’s portfolio is green-certified and we aim at to green the remainder of our profile by 2030.”
Ascott Residence Trust (ART) has released a $200 million sustainability-linked bond, making it the first Singapore-listed property trust and the first hospitality trust worldwide to issue such a bond.